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Moderate growth in office stock take-ups from government related leases in Sydney and Melbourne and demand from smaller private tenants has not been enough to overcome slowing tenant demand, according to Knight Frank’s Annual Eastern Seaboard Suburban Office Report.
However, in spite of the understated performance in leasing markets, the report noted that east coast investment sales activity reached record levels over 2013, with $1.15 billion worth of sales greater than $10 million, a result that was up 62% from 2012 level and that exceeded the previous record in 2007 by 12%.
The report cites sluggish labour market as a primary factor in decelerated demand in the suburban office market. The east coast suburban vacancy rate for January was at 8.2%, up from 7.5% the year prior, said Knight Frank head of research and consulting, Matt Whitby.
 “The only market to buck the upward trend in vacancy rates over the past year was Brisbane (9.3% down from 10.2%), albeit this was solely driven by the improved performance and take up which occurred in the inner north eastern precinct, including suburbs such as Lutwyche, Nundah, Eagle Farm and Hamilton,” said Whitby.
“Over the past year, the suburban vacancy rate in Melbourne increased from 6.1% to 7.5%, whilst Sydney’s suburban vacancy reached 8.7%, up from 8.4% a year earlier.”
Frank Knight reports that supply levels have remained relatively benign, with gross office supply levels in all markets over 2012 and 2013 below the historical average. In 2012 the total east coast office supply was at 87,996 square metres, while in 2013 84,527 square metres were supplied.
“Development activity in the suburban market is expected to pick up in 2014, with just over 100,000 square metres expected to be completed, driven by larger developments in Melbourne and Sydney,” noted Whitby.
“These projects are underpinned by government/public sector entities such as the Australian Taxation Office (two buildings), South East Water, Australia Post and the CFA. The suburban markets are expected to remain largely pre-commitment led for the larger projects, attracting cost sensitive but location indifferent entities which seek modern, large floor plate accommodation. In addition, some smaller speculative construction in the office parks is expected to continue.”
Average east coast suburban office gross face rentals have recorded approximately 0.4% growth for A-grade assets over the past 12 months. Weighted average A-grade gross face rents are currently $403 per square metre, ranging on average from $441 per square metre in Brisbane to $396 per square metre in Melbourne.
<img src="/images/2014/03/28/kf-chart-two-march-28.jpg" alt="">
However, gross effective rents (rents averaged over the full term and taking into account incentives or rent-free periods) fell by 1.9%, as incentive levels over the year. Prime incentives were up over the year, according to Knight Frank, averaging 22%, from 20% a year ago on a weighted basis.
The eastern seaboard suburban market’s highest average face rentals were found in Brisbane’s inner north precinct, at $475 per square metre.
“Although the majority of sub-markets recorded flat to negative rental growth over the past 12 months, the exceptions were the relatively strong performing markets of the outer east in Melbourne along with the south and inner west in Sydney,” Whitby commented.
“Gross face rental growth was highest in the outer east precinct in Melbourne at 4.1% and the majority of which came from the lift in prime rents associated with the development of new generation projects built over the past two years.
“In Sydney, the south region, which recorded gross face rental growth of 2.4%, has been one of the better performing markets in terms of leasing activity as a result of relatively firm enquiry levels seeking creative style accommodation along with access to the improving amenities of the area. In the Sydney Inner West, face rental growth of 2.4% has been recorded on the back of the steady momentum in the Sydney Olympic Park and Rhodes markets, albeit the rise in A-grade incentive levels to 24% from 22% offset the growth on an effective basis.”
Of the suburban market’s performance in comparison to results from the CBD, Whitby noted that the suburban market continues to trail behind.
“The suburban market continues to lag the yield compression being experienced in the CBD and core markets. However an average 20 basis points of firming occurred over the past year, driven by Melbourne which recorded a 40 basis point compression in prime and 50 basis point of firming in secondary assets,” he said.
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Labour market headwinds see east coast suburban office vacancies up: Knight Frank

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Australian property prices are set to even out after last year’s growth in Sydney and Melbourne, according to new data from Residex, the research arm of online real estate portal Onthehouse.
Onthehouse claims that the Sydney market has reached its peak after 15% median price growth in the 12 months to February 2014. In the same period, median house prices in Melbourne rose in value by 10% while Perth’s prices grew by 9.25%, according to Residex. Weakening consumer sentiment and affordability issues are expected to contribute to a drop off in dwellings price growth over the next five years.
John Edwards, the consulting analyst for Onthehouse and founder of Residex, commented that wage growth had not kept pace with property price growth.
“While property values experienced strong growth in the last quarter of 2013, wages have not grown at the same rate. Sydney’s property market, which is a leading indicator for the national market, has consistently outperformed wages growth which continues to push property out of reach of buyers,” Edwards said.
“There is a natural limit on the maximum value of an asset at any point in time and that is the value at which the masses deem it to be unaffordable. At that point, competition for the asset diminishes. In Sydney, the trend data suggests that house prices are reaching their peak value in dollar terms for this period of growth.”
Residex cites the Westpac Melbourne Institute Index of Consumer Sentiment as a factor in its prediction. The index is at its lowest level since May last year, having fallen 10.9% from its peak in November 2013. It has also noted the same institute’s Unemployment Expectations measure, which has risen by 5.5% since May 2013, and is now sitting 13.6% above its November level. According to Residex, the unemployment index is at levels surpassed only by recession period readings during 2008-09, the early 1990s and early 1980s.
Onthehouse predicts that Sydney’s annual price growth will slow to 4% over the next five years, with Melbourne at 4% and Perth at 3%.
 
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Property prices to stabilise: Onthehouse

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With Channel 9’s The Block: Fans v Faves art deco apartments taking off, everyone’s talking about warehouse conversions. We run through five of the best on the market.
<a href="https://www.realestate.com.au/property-house-vic-port+melbourne-116434871" target="_blank">263 Rouse Street, Port Melbourne, Victoria</a>
 <img src="/images/2014/03/27/port%20melbourne%20march%2027%20one.jpg" alt="">
It’s no surprise that Melbourne makes an almost clean sweep of the warehouse conversion market – as a former industrial hub that saw most of its major manufacturers move away from the inner city decades ago, there are now plenty of beautiful historic buildings to occupy.
 <img src="/images/2014/03/27/port%20melbourne%20march%2027%20three.jpg" alt="">
This three bedroom apartment in <a href="/news">Port Melbourne</a> with $1.2 million plus expectations bears all the hallmarks of a great warehouse conversion – open plan living spaces, interesting scaling and plenty of timber, steel and exposed brick. Not to mention a huge cast iron fireplace. The median unit price in Port Melbourne was $660,500 in February, while the median house price is $897,500, according to RP Data.
<img src="/images/2014/03/27/port%20melbourne%20march%2027%20two.jpg" alt=""> 
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<a href="https://www.realestate.com.au/property-house-vic-richmond-116223743" target="_blank">30 Bendigo Street Richmond </a>
<img src="/images/2014/03/27/main%203.jpg" width="460" height="345">
This particular newly renovated apartment began its life in 1908 as the Wertheim Piano Factory. It then became the home of Heinz Australia, before it was passed over to GTV9, 1957. The former Channel 9 studios once housed a radio station, a concert band, a junior ballet, a full time chorus and an orchestra.
<img src="/images/2014/03/27/image5.jpg" width="460" height="345">
This two bedroom, two bathroom conversion includes a large decking area, a rare amenity for inner city warehouse living. The grand arched windows flood the open plan living space with light. It’s selling from $1.095 million; <a href="/news">Richmond</a>'s median house price is $1,041,000. The median sales price of Richmond units in February was $485,000.
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<a href="https://www.realestate.com.au/property-apartment-vic-collingwood-116386907" target="_blank">18/120 Cambridge Street, Collingwood, Victoria</a>
<img src="/images/2014/03/27/main%204.jpg" width="460" height="345">
The former Foy &amp; Gibson spinning mills have been converted into a series of apartments. The building was built in 1895 and designed by <a href="/news">Collingwood</a> councillor William Pitt. This two bedroom apartment’s signature is its distinctive bay windows and soaring ceilings.
<img src="/images/2014/03/27/image4.jpg" width="460" height="345">
The vast space is divided by ornate wooden panelled walls and screens, giving the one-time factory space a unique character. The spinning mills apartment is on the market with expectations of $800-880,000. Collingwood's median unit price in February was $388,000, and its median house price for the month was $889,000.
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<a href="https://www.realestate.com.au/property-apartment-nsw-surry+hills-116485443" target="_blank">Surry Hills, New South Wales</a>
<img src="/images/2014/03/27/image4%201.jpg" width="460" height="345">
Developers Cleveland &amp; Co are currently accepting enquiries for two and three bedroom apartments off the plan in this Surry Hill industrial site. The history of the two adjoining warehouses goes back to 1889, and the two buildings with art deco and Victorian heritage features are set to house 39 apartments. SJB Australia, who have plenty of experience will injecting new life into heritage buildings, will be the project’s architects, with interiors by Burley Katon Halliday.
<img src="/images/2014/03/27/image6.jpg" width="460" height="345">
According to the listing, most apartments will have a northerly aspect, meaning there’ll be plenty of light bouncing around the spaces, with three to four metre high ceilings. The site's <a href="/news">Surry Hills</a> location is thus far undisclosed. Median unit prices in the suburb sat at $658,500 for February.
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<a href="https://www.realestate.com.au/property-townhouse-vic-north+melbourne-116299547" target="_blank">1/2 Atkin Street, North Melbourne, Victoria</a>
<img src="/images/2014/03/27/image3%202.jpg" width="460" height="345">
At 150 years old, this <a href="/news">North Melbourne</a> building has had a long life as a Masonic hall. It has now been converted into apartments, with this multi-level residence selling from $600,000. The listing describes the apartment as having a “riot” of materials, shapes and textures, and it’s hard to disagree. With Baltic pine, Kauri pine and oak timber flooring, the apartment also features exposed brick, original 1855 bluestone walls and exposed steel.
<img src="/images/2014/03/27/main%205.jpg" width="460" height="345">
The conversion was undertaken by Re:CONSTRUCTION, a firm that specialises in warehouse conversions. The two bedroom residence also includes a raw-walled balcony and a solar power system. The apartment is on the market for $600-660,000. The median unit sales price in North Melbourne were at $472,500 for February, while the median house price was $910,000.
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The five best warehouse conversions on the market

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The credentials of design blogger Lucy Feagins will be on show as the Brunswick home she shares with partner Gordon Johnson goes to auction this weekend.
The Victorian residence at <a href="https://www.nelsonalexander.com.au/properties/buying/brunswick-12-nash-street#.UzDAMqiSx3h" target="_blank">12 Nash Street</a> has a single fronted cottage with one bedroom and one bathroom, with another one bedroom, one bathroom studio sitting at the back of the property.
Feagin and Johnson purchased the cottage in late 2007 for $335,000. According to <a href="https://thedesignfiles.net/2014/03/melbourne-home-lucy-feagins-and-gordon-johnson/" target="_blank">a post</a> on The Design Files, Feagins lived with her parents until the age of 27 to save for the purchase. The home, selling through Peter Stephens and Luke Chisholm of Nelson Alexander, is now listed with expectations of $640,000 to $690,000.
Photos of the property from 2007 show just how much work the couple have put into the home over the past six years.
<img src="/images/2014/03/25/11898978_2.JPG" width="460" height="306">
Above: The home's former living area. Below: The current kitchen and dining area.
<img src="/images/2014/03/25/6789295fo.jpg" width="460" height="306">
As Feagins details in her blog, the extensive interior renovations included replacing the kitchen and bathroom and installing a toilet in the main house. She describes the construction of the house’s outdoor studio 18 months ago as the completion of her “dream project.”
The work of several young Australian artists is featured in the home, including pieces by Emily Ferretti, Kirra Jamison and Lucas Grogan.
Feagins launched <a href="https://thedesignfiles.net/2014/03/melbourne-home-lucy-feagins-and-gordon-johnson/" target="_blank">The Design Files </a>blog in 2008, covering architecture and interiors, arts, crafts, graphic design and illustration. 
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Lucy Feagins of The Designs Files to sell Brunswick cottage

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Sorrell, the $35.4 million Hindmarsh Development and ACT government joint venture, was unveiled yesterday.
The three building complex, built by Hindmarsh Construction, comprises 132 apartments. Construction of the development was completed earlier this month. Sorrell is part of the ACT government’s efforts to revitalise the former Burnie Housing precinct.
<img src="/images/2014/03/27/lyons%20march%2027%202.jpg" alt="">
According to the ACT manager of Hindmarsh Development Brett Smith, the residential project exemplifies the benefits of working with the public sector.
“Sorell stands as a model of collaboration between Hindmarsh and the ACT government and the positive response to the project vindicates the joint venture’s vision to bring premium quality residential development to the precinct. We are proud to be associated with a project that has breathed new life and vitality into Lyons,” said Smith. The development sold 93 apartments off the plan immediately after its launch in March 2011.
Sorrell was designed by Antoniades Architects, with interiors by Hindmarsh. The complex also includes a 15 metre gas heated swimming pool and a furnished outdoor barbecue area.
<img src="/images/2014/03/27/lyons%20march%2027%203.jpg" alt="">
Hindmarsh has been operating in Canberra for 30 years. Its other projects include Altitude Apartments, which was completed last year.
The company, which has completed projects with value in excess of $2 billion, recently commenced construction of the Creswell Residences in Campbell, which comprises 52 apartments. It is also planning a redevelopment of the RSL national office, which is set to include a new national office for the RSL in addition to 174 apartments.
For the latest development listings, brought to you by Property Observer and partners, see our <a href="https://showcase.propertyobserver.com.au/" rel="nofollow">INVESTOR SHOWCASE</a>. 
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Completed Sorrell Apartments unveiled in Lyons, ACT

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In May 2011, all new homes were required to be built to meet a nationally implemented 6 Star standard energy rating. However, what constitutes a 6 Star rating differs from state to state and this has provoked nationwide challenges.
The Building Thermal Performance Assessment system was introduced by the Building Code of Australia, and is enforced by state governments. According to the Building Commission of Victoria, a home with a 6 Star rating are projected to use 24% less energy for heating and cooling than 5 Star rated homes.
Although the ratings are applied nationally, the requirements for a six star rating are not universal. The system is designed to be flexible, and is “performance based rather than prescriptive”. As the Star rating system is designed to tackle thermal performance, it is site specific – a home’s orientation on a block (whether it faces north, south, east or west) or its surrounding climate can influence the design factors required to meet a 6 Star rating. In the Northern Territory, for example, homes in certain areas require a breezeway for airflow, while homes in colder climates may not.
According to Natalie O’Shea, a designer at building franchise Hotondo Homes: “It’s challenging to design homes on a national level as each state has its own particular standards and differing requirements.”
“One of the biggest things affecting the energy rating of a home which is consistent across the country is the orientation of the block [of land] and the home,” said O’Shea.
“When you have the right design on the right block there are minimal additions that need to be made. The home will naturally stay warmer in winter and cooler in summer.
“Materials are getting better with their thermal qualities, but extra insulation, double glazed windows and wider eaves may be necessary to add in order to achieve the desired energy rating, but they come at an additional cost.”
A popular home design by Hotondo Homes achieved a 6 Star rating for all orientations in Hobart, Melbourne, Canberra, Adelaide and Perth, according to a 2012 report by Sustainability House, contracted by the Department Climate Change and Energy Efficiency.
The home also achieved a 6 Star rating in three orientations in Sydney, two orientations in Brisbane but only a single orientation in Darwin, despite consistent floor plans (pictured below) and building materials.
 <img src="/images/2014/03/26/hotondo%20floorplans.jpg" width="460" height="521">
 
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Meeting 6 Star ratings requirements a state by state challenge

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Former Olympian Micheal Wilson and his wife Mary are selling the <a href="https://www.realestate.com.au/property-viticulture-tas-legana-7608343" target="_blank">Vélo Wines vineyard</a> in Tasmania’s Tamar Valley.
<img src="/images/2014/03/25/image10.jpg" width="460" height="345">
According to RP Data, the 4.71 hectare property has been listed for 94 days thus far, hitting the market on December 18 last year. The winery sale includes the Barrel Room Café and Vélo Vineyards cellar door, which the property’s listing boasts is one of the busiest in the Tamar Valley. The property is listed with $1.25 million expectations.
The vineyard, overlooking the Tamar River, is situated along the Tamar Valley tourist route, 10 minutes’ drive from Launceston’s CBD. In addition to the winery’s 50 year old vines, the oldest cabernet vines in Tasmania, the property also includes 80 year old chestnut trees, olive and citrus trees and herb and vegetable beds.
<img src="/images/2014/03/25/image7.jpg" width="460" height="345">
Vélo is selling through John Hewitt of Landmark Harcourts Tasmania.
Wilson, a former Olympic cyclist, purchased Vélo with his wife in 2001. Presumably, the vineyard is so named for the French translation of the word “bicycle.” Wilson (pictured below at Vélo) competed in the 1980 Moscow Olympics.
<img src="/images/2014/03/25/image12.jpg" width="460" height="345">
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Tamar Valley vineyard on the market with $1.25 million expectations

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RP Data has collated median unit values across Australia for December 2013 to bring us the 10 most affordable capital city suburbs for units.
As expected, South Australia, Tasmania and Queensland come out on top.
<ol>
<li>
<a href="/news">Elizabeth Vale</a>, South Australia. Median unit value: $143,425. 45.9% of homes in Elizabeth Vale are owner occupied, according to ABS data. Elizabeth Vale is a northern suburb of Adelaide.  
</li>
<li>
<a href="/news">Elizabeth North</a>, South Australia. Median unit value: $159, 348. Five minute's drive north of Elizabeth Vale, the suburb was established by the South Australian Housing Trust in 1955. 43.4% of homes in Elizabeth North were owner-occupied. This <a href="https://www.realestate.com.au/property-unit-sa-elizabeth+vale-114431015" target="_blank" style="line-height: 1.3em;">2 bedroom unit</a> (pictured below) in Elizabeth Vale is currently listed at $134,900. <img src="/images/2014/03/20/elizabeth%20vale.jpg" width="457" height="342" style="line-height: 1.3em;"> 
</li>
<li>
<a href="/news">Logan Central</a>, Queensland. Median unit value: $171,459. The CBD of Logan City, Logan Central showed 10% population growth between 2006 and 2011. 
</li>
<li>
<a href="/news">Woodridge</a>, Queensland. Median unit value: $182, 648. Also located in Logan, 39.4% of homes in Woodridge are owner occupied. 
</li>
<li>
<a href="/news">New Norfolk</a>, Tasmania. Median unit value: $183, 601. New Norfolk is located on Tasmania's Derwent River, with the majority of households primarily made up of couples with children. These <a href="https://www.realestate.com.au/property-unit-tas-new+norfolk-107687716" target="_blank" style="line-height: 1.3em;">new strata units</a> in New Norfolk (pictured below) are currently available from $195,000. <img src="/images/2014/03/21/image3.jpg" width="456" height="342" style="line-height: 1.3em;"> 
</li>
<li>
<a href="/news">Salisbury</a>, South Australia. Median value: $183,970. A northern suburb of Adelaide, Salisbury has a population of 7,551 according to the 2011 census. 
</li>
<li>
<a href="/news">Berriedale</a>, Tasmania. Median value: $184,217. Berriedale, in Hobart's north, is bisected by the Brooker Highway. 
</li>
<li>
<a href="/news">Beenleigh</a>, Queensland.  Median value: $186,159. Another Logan suburb, Beenleigh is located 34 kilometres south of the Brisbane CBD. This <a href="https://www.realestate.com.au/property-unit-qld-beenleigh-116355355" target="_blank" style="line-height: 1.3em;">two bedroom unit on Catherine Street</a> in Beenleigh (pictured below) is currently listed with an asking price of $149,000 plus. <img src="/images/2014/03/21/main.jpg" width="456" height="342" style="line-height: 1.3em;"> 
</li>
<li>
<a href="/news">Slacks Creek</a>, Queensland. Median value: $186,619. The fourth Logan suburb on the list, Slacks Creek had a population pf 10,418 in 2011. 
</li>
<li>
<a href="/news">Salisbury North</a>, South Australia. Median value: $188,262. A short trip up from Salisbury, sixth on the list, will bump prices up by roughly $4,000, according to RPData.
</li>
</ol>
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The top 10 most affordable capital city suburbs for units: RP Data

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Once the very definition of a boom town, Broken Hill is a historic community pulling out all the stops to fight sluggish buyer interest.
Located in far west outback New South Wales, Broken Hill has a population of 18,517 as of 2011, with a total of 9,570 dwellings.
The border town’s economy has a rich heritage. The Broken Hill Proprietary Company incorporated in 1885, operating a silver and lead and zinc mine in the town. After merging with Dutch mining company Billiton, BHP Billiton is now arguably the biggest mining company in the world.
However, like other mining towns, the economy of Broken Hill is vulnerable to changes in commodity prices and the performance of the mining sector. In recent years, the residents of Broken Hill have seen the effects of the resources downturn, with CBH Resources sacking a third of its 150-odd strong workforce at Broken Hill’s Rasp Mine in September last year. The end of NSW’s ban on uranium mining may offer some economic growth for the region, but the closure Uranium One’s Honeymoon mine, 75 kilometres north-west of Broken Hill, may temper expectations.
The 2011 census showed that Broken Hill had the greatest population decline of anywhere in Australia for the five years prior; with the population down 120 people from 2006. At the time of the census, unemployment in the outback town was recorded at 8.3%, compared with the national average of 5.3%.
According to RP Data, the current median sales price of a home in Broken Hill in $120,000. Median prices last peaked in the region in 2008, at $135,000. Price comparisons with neighbouring areas are largely redundant – the nearby Silverton has fewer than 100 inhabitants, while towns of similar populations are hours away.
The majority of Broken Hill’s dwellings are stand-alone single storey houses. Housing research firm Residex provides a two bedroom, one bedroom single storey home, such as this one at <a href="https://www.realestate.com.au/property-house-nsw-broken+hill-116269135" target="_blank">639 Lane Street</a> (pictured below), as a typical property for the town. 
<img src="/images/2014/03/24/main%201.jpg" width="456" height="343">
This five bedroom heritage listed home at <a href="https://www.realestate.com.au/property-house-nsw-broken+hill-116496223" target="_blank">181 Sulphate Street</a> (pictured below) is currently listed at $270,000, more than double the median price for the town.
<img src="/images/2014/03/24/image3.jpg" width="460" height="345">
Broken Hill’s residents, businesses and local council are hoping to turn things around for the slowing outback economy. In September last year, Broken Hill real estate agent Clifford Wren spoke to the ABC, calling on the local and state governments to offload unused land to developers for free to boost the local economy and drive population growth.
The town is increasingly marketing itself as a tourist destination in a bid to reduce its exposure to the mining sector. In 2010, Broken Hill launched the Broken Hill Strategic Tourism Plan for 2010 to 2010. Strategies include the development of a film studio and the push to make Broken Hill the first city to receive a National Heritage Listing, to acknowledge its historical and touristic value.
Meanwhile, mining activity continues in the city. In 2013, a $13m upgraded rail system was launched, providing Cristal Mining (CMA) with the ability to transport its products from Broken Hill to Port Adelaide, giving it global access. Cristal Mining employs 45 Broken Hill residents. Perilya Limited also continues to operate a zinc, lead and silver mine in Broken Hill.
However, it is yet to be seen whether the town’s efforts to revamp its economy will have long-term, sustainable effects on its property market. 
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Suburb spotlight: Efforts to revamp Broken Hill yet to strike it lucky

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Approaching the Albert Park site of The Block: Fans v Faves on open for inspection weekend, one is reminded that for all the tears and tantrums, the show is still a commercial exercise. 
Blocks away, sponsor merchandise could be seen adorning the punters streaming from O’Grady Street; this reporter copped more than one advertiser-distributed helium balloon to the face on her way to the apartment complex. Even the neighbours got in on the action, with several garage sales ensnaring fans of the show in transit.
Continuing into the building, crowds are funnelled past the ground floor communal pool and recreation space, which was closed off from the public. A peek through the privacy screens established that the space was surprisingly large and well planned – the communal area will afford the future residents plenty of their own space.
On to the apartments: at this point it must be noted that the crowd control staff were exceptional, funnelling punters through with impressive efficiency and professionalism. 
First stop, Kyal and Kara’s apartment.
Kyal and Kara: <a href="https://www.realestate.com.au/property-apartment-vic-albert+park-116390163" target="_blank">2/47 O’Grady Street</a>
In the wide gallery-style hallway of Kyal and Kara’s apartment, one can understand the judges' praise of the couple’s entranceway. While not quite <a href="https://www.archdaily.com/226316/tadao-ando-architecture-exhibition/" target="_blank">Tadao Ando’s Benesse House</a>, the setting of Ali McNabney Stevens prints against the concrete walls is just the ticket for a crowd-exhausted visitor – the artwork looks beautiful, and the space (and viewer's mood) is elevated.
<img src="/images/2014/03/24/kkh2r6livingdining04.jpg" width="460" height="259">
Entering the living areas, the judges' words again ring true – the space feels surprisingly small. It’s an intimate lower level, better suited for a young couple having a few friends over for some wine and movies than a big party. The outdoor terrace, with its plant wall, makes the space feel like a private retreat. Though the living and dining area’s size lost the couple points on the show, a quiet sanctuary isn’t so bad – but buyers may not agree.
A very slow ascent up the stairs, enforced by the number of other viewers, allows one to appreciate the timber walling that stretches from the first level all the way to the roof, a space that isn’t used to such great affect by all the teams. 
Throughout the apartment, I am consistently impressed with the team’s styling efforts. Though in some rooms they show a disappointing amount of restraint (such as in their master bedroom), Kyal and Kara, along with Steve and Chantelle, have the most audacious use of colour – perhaps the boldness of youth.
<img src="/images/2014/03/24/resizer%201.jpg" width="460" height="258">
However, travelling from room to room, I am puzzled by the choice to litter bedside tables and bathroom counters with bottles of Nature’s Own supplements. Who is their target buyer – vivacious but vitamin deficient young professionals? Embarrassingly, it isn’t until the same is witnessed in Brad and Dale’s apartment that the penny drops – of course, Nature’s Own is a sponsor.
Brad and Dale: <a href="https://www.domain.com.au/property/for-sale/townhouse/vic/albert-park/?adid=2011038525" target="_blank">4/47 O’Grady Street</a>
Wandering from Kyal and Kara’s rooftop terrace to Brad and Dale’s, the first couple’s outdoor entertaining area shines. The spaces are yet to be seen on television, so viewers will make up their own minds, but Kyal and Kara’s aforementioned use of colour, along with their luxurious amenities (marble benchtops in a rooftop terrace?) make their top level a stand out. 
That said, size does matter. The wet/dry bathroom/bedroom move that the boys pulled this week was indisputably a success. Among the crowd yesterday, there were more than a few “wows” and one whistle upon entrance to the master bedroom, which served as a master class on how to create space. Floor to ceiling windows on two sides of the bedroom and in the en suite reflect light along the light coloured tiles, illuminating the rooms and creating a sense of light and freedom – no mean feat when there are more than a dozen other people in the same space.
<img src="/images/2014/03/24/7bdh4r7masterbedensuite.jpg" width="460" height="259">
The boys know what they’re doing when it comes to expanding areas, rather than closing them in. Beyond the “Bond style” hidden closet in their walk in wardrobe, there are storage recesses everywhere and nary a shelf to be seen. 
Downstairs, Brad and Dale’s living area shows continues to show the boys are clever planners. They swapped out their much maligned tiny dining room table for a six seater, making a decently sized dining and entertaining area. The kitchen is nowhere near as bad as the judges made out in their review, and actually seemed quite the crowd pleaser – however, ditching the 90s style white leather and chrome bar stools would go a long way to soften the space.
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Steve and Chantelle: <a href="https://www.domain.com.au/property/for-sale/apartment-unit-flat/vic/albert-park/?adid=2011049155" target="_blank">1/47 O’Grady Street</a>
Onward we are ushered to Steve and Chantelle’s apartment. As the property’s agent David Wood noted last week, the couple’s living and dining area is a stand out. It immediately speaks for itself as a space for a family that likes to entertain, with bench seating along the walls and a dining area that is tucked into a booth, leaving plenty of room for the living areas.
<img src="/images/2014/03/24/csh1r6livingdining03.jpg" width="460" height="259">
This reporter will admit to being skeptical about the team’s styling credentials in the past – on television, their choices have read a little too self-consciously “quirky” and immature for their intended buyers to really hold on to. However, upon entering their apartment, it must be said that there is substance anchoring the couple’s style.
While all Chantelle’s references do get muddled at times (the sunny 50s feel in the kitchen jars a little with the modernist 60s style in the lounge), in general the apartment pulls off pastiche with aplomb. However, the old kerosene lamps filled with fairy lights suspended with a vintage ladder will be a bit much for even the greatest Etsy enthusiast. And the pillow printed with a black and white photo of an indigenous American man as a throwaway reference in their vaguely Aztec themed second bedroom is in poor taste. When it comes to pillows, better to stick to the Hermès.
<img src="/images/2014/03/24/resizer%203.jpg" width="460" height="258">
That said, this is the first apartment of the four that feels truly lived in and liveable. The barn door, comprising almost an entire wall of their ground floor guest room, is another savvy planning decision – when closed, it’s a terrific design feature, and when open, it opens up the room as another expansion on the entertaining space. The team seems to have really understood the importance of a good party area for a luxury buyer than aspires to entertain, and that for buyers, it's all about making a first good impression.
In regards to living areas, the couple has flipped Kyal and Kara’s method; their ground floor space is made for many, where Kyal and Kara’s is a quiet retreat. Steve and Chantelle’s rooftop terrace is intimate, with a (frankly massive) day bed set in the northern corner for a couple to enjoy the sunset and city views, while the Ks have set their challenge winning dining table along with ample bench seating up top, to accommodate a big BBQ.
Alisa and Lysandra: <a href="https://www.realestate.com.au/property-apartment-vic-albert+park-116350463" target="_blank">3/47 O’Grady Street</a>
While on the day viewers are ushered from the top of the twins’ property down, interested buyers will hopefully have the opportunity to go the conventional route. By far, the first level is the highlight of the team’s apartment – upstairs, room has been sacrificed to make for their light vault, although the feature is a success. And that said, the confinement will not be felt nearly so keenly when the apartment isn’t filled by dozens of spectators. 
The styling in the apartment is patchy – while there are some terrific pieces scattered throughout, it feels a little sterile. This is magnified in the master bedroom, the size of which is not helped by the depressing concrete wall. The room’s black wardrobe with timber inlays, design-wise, is great; unfortunately, such oppressive darkness in such a small room doesn’t help matters.
<img src="/images/2014/03/24/resizer%204.jpg" width="460" height="258">
I disagree with the judges who in last night’s episode said the team’s walk in robe felt “cheap and nasty”; while the steel edges did feel too tough, after all the concrete and harsh colours of the master bedroom, the timber work provided some relief. 
Shuffling downstairs, the mood of viewers changed considerably. The stairwell itself is lit with terrific pendant lights, while a wall recess housed a large art work to great effect – the absence of art in a corresponding bare space in Brad and Dale’s apartment was felt.
<img src="/images/2014/03/24/lah3r6living10.jpg" width="460" height="259">
And the downstairs area was, as expected, the centrepiece of the twins’ apartment. The kitchen was truly enormous, and the sense of luxury continued through the living and dining areas. While the apartment’s décor lacked the warmth of the other teams, the twins’ understanding of the modern buyer was on show; the little tucked away work nooks and the option of dining on the formal table or on the huge bench space will appeal to many contemporary workers, for whom flexibility is everything.
After spending more than an hour in tight quarters with my fellow spectators, stepping out of The Block and onto the street felt a little bewildering. Strolling past host Scott Cam, who was taking photos with children while a magician entertained line-weary fans, one is reminded that no matter how the auction goes on April 8, with another season already planned for this year, the show will go on. 
Photos courtesy of Channel 9 
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The Block on show at this weekend's open for inspection

The residential transformation of St Kilda Road is set to continue into with more new apartment plans for the sought-after boulevard.

Wing Tai Asia has lodged plans for a major residential tower at 464-466 St Kilda Road, replacing the former VACC House with an 18-storey mixed-use development designed around a retained heritage podium and a sculpted contemporary tower.

The proposal, prepared under Victoria’s Significant Residential Development with Affordable Housing pathway, would deliver 325 apartments and ground-floor retail across the prominent 4,653 sqm boulevard site in Melbourne’s St Kilda Road North Precinct.

The project centres on the adaptive reuse of the site’s heritage-listed VACC Building, an eight-storey office designed by Bernard Evans that has occupied the address for decades. Planning documents state the development would involve “carefully dismantling and conserving off-site the original metal fabric of the podium visible from St Kilda Road,” before reinstating it as the defining frontage of the new scheme.

Above the restored podium, Wing Tai is proposing a curvilinear residential tower. The scheme includes 172 one-bedroom apartments, 63 two-bedroom apartments, 66 three-bedroom apartments, and 24 four-bedroom apartments, alongside two ground-floor food and beverage tenancies fronting St Kilda Road.

The tower has been designed with substantial articulation and variable setbacks to minimise perceived bulk and maintain view corridors along the boulevard. Urbis, which prepared the planning report, said the design “has been significantly articulated through a curvilinear design” with “an interplay with materials, façade expression and depth” to create visual separation and visual interest.

The proposal also includes 254 basement car spaces, landscaped pedestrian links connecting St Kilda Road and Queens Lane, and a biophilic landscape strategy featuring canopy trees, raised planters, cascading greenery and a glass oculus pool overlooking the eastern frontage.

Planning documents confirm the $270.1 million development will contribute 3 per cent of project costs to the Social Housing Growth Fund as part of the application process.

Wing Tai acquired the St Kilda Road property in 2018 alongside Abacus Property Group for $95.38 million, before later consolidating ownership of the site. The property previously served as the Victorian Automobile Chamber of Commerce headquarters for around 60 years.

The transformation of the St Kilda Rd boulevard is already beginning to materialise, with a number of high-profile projects recently completed, launched, or approaching launch as developers continue to back the long-term appeal of the precinct.

Among the most notable recent completions is Louise by Samuel Property Group, just off the strip on Queens Lane, the same pocket Hirsch &amp; Faigen recently launched The Queensbury. Mirvac is too on the same street with The Albertine, which is approaching completion.

Dexus recently secured approval for its slice of St Kilda Road, while Gurner also has approved plans for the precinct.

Joel Robinson

Wing Tai unveils 325-apartment St Kilda Road tower on former VACC House site

Malaysian developer <a href="https://www.apartments.com.au/developers/s-p-setia">SP Setia</a> is the latest to jump into St Leonards booming Transport Oriented Development precinct.

The developer, which has previously delivered Sapphire by the Gardens apartment development in Melbourne, identified the Atchison Street site in 2023. It filed a Scoping Report around 12 months ago, and now has revealed the designs for the new&nbsp;40-storey mixed-use tower.

The State Significant Development Application covers <a href="https://next-portal.urban.com.au/projects/14650/summary">20-22 Atchison Street</a>, a 1,374 sqm site positioned between St Leonards Station and the new Crows Nest Metro station.

Designed by <a href="https://www.apartments.com.au/architects/cox-architecture">COX Architecture</a>, the project would deliver 181 apartments, above a four-storey commercial podium, five basement levels, and new public domain works along Mitchell Street. The apartment mix comprises 35 one-bedroom apartments, 39 one-bedroom-plus-study apartments, 85 two-bedroom apartments, and 22 three-bedroom residences.

The proposal has been lodged as a shop-top housing development under the NSW Government’s TOD planning pathway, which allows increased density around key transport infrastructure. The site sits within the recently rezoned Crows Nest Accelerated TOD Precinct.

<img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="b799673d-48e2-46b0-801a-0e33a9330100" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/atchinson%20site.png?VersionId=dPh0UfwfaHpbFL1R7H1cbZNbIW0CHbCC" />

SP Setia acquired the Atchison Street site as part of its continued expansion into the Australian apartment market. In comments made to City &amp; Country (The Edge Malaysia) in 2023, SP Setia President and CEO Datuk Choong Kai Wai described the acquisition as “a strategic move” aligned with the group’s post-pandemic market recovery strategy.

“Our target for this exceptional development is local and overseas buyers, including first-home buyers, downsizers and investors,” Choong said.

The tower has been designed as a slender vertical form rising from a mixed-use podium, with COX Architecture positioning the development as a response to the evolving St Leonards and Crows Nest skyline.

“The purpose of the project is to facilitate the delivery of high-quality housing at a strategically located site and deliver a built tower outcome that is consistent with the desired future character of St Leonards and aligns with the TOD controls,” the design report stated.

<img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="b1a85eee-76f7-436c-a6da-73ba827b9b13" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/atchinson%20entry.png?VersionId=dA9jHGPMcm.dDbwk4QfxqWiY5bfh3UVt" />

The podium would incorporate retail uses fronting Atchison Street, commercial tenancies, landscaped communal areas, and pedestrian improvements along Mitchell Street. Vehicle access and loading would be consolidated via Atchison Lane.

Residents would have access to more than 665 sqm of communal indoor and outdoor spaces, while the development proposes 96 parking spaces across five basement levels.

The proposal also includes a commitment for 10 per cent of residential floor space to be allocated toward affordable housing through a monetary contribution.

COX said the tower form responds directly to the emerging high-density character of the precinct while seeking to maximise solar access, cross ventilation, and outlook from apartments.

<img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="2163f85c-f63b-4be3-aafa-f8763976cec5" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Article%20Feature%20Image%20%28Grid%29_5.png?VersionId=WiAmtIKJ6.ZQ41EtYEQ1fol7AeorKBlL" />

“The building is orientated towards north,” the Apartment Design Guide compliance report noted, adding that the tower’s slim form was driven by the constrained inner-urban site dimensions.

The design also incorporates landscaped setbacks and communal open space at podium level, intended to soften the interface with surrounding streets and improve pedestrian amenity.

The project adds to a growing wave of redevelopment proposals reshaping St Leonards and Crows Nest following the opening of the Sydney Metro City line and the NSW Government’s push for higher-density housing around major transport nodes.

Last week Stockland filed plans just down the road. They want to build a <a href="https://www.apartments.com.au/new-apartments/601-pacific-highway-st-leonards-nsw-2065">52-storey tower on Pacific Highway</a>.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-stockland-plans-52-storey-538-apartment-st-leonards-tower">First look: Stockland plans 52-storey, 538-apartment St Leonards tower&nbsp;</a>

First look: SP Setia targets St Leonards skyline with 40-storey TOD tower

<a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a> has revealed plans for a new mixed-use tower at 10 Dangar Street, Wickham, advancing a proposal that would reshape the southern gateway to Newcastle’s city centre with one of the city’s tallest residential buildings.

The State Significant Development proposal, now on exhibition, seeks approval for a <a href="https://www.apartments.com.au/new-apartments/bowline-10-dangar-street-wickham-nsw-2293">43-storey tower</a> immediately adjacent to the Newcastle Interchange. The project would deliver around 200 apartments, including 42 affordable housing dwellings, alongside 99 co-living units, a 171-room hotel, retail space, and new public domain integrated through the site.

The scheme marks a significant escalation of plans previously approved for the site. Urban Property Group took over the prominent 2,904 sqm parcel, where excavation and demolition had already commenced under an earlier consent for a 14-storey mixed-use development.

<img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="58a96dd9-407f-4d20-86b4-94e4bfeef74b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20podium.png?VersionId=LGlf08pdFGAZDzvx_CXC4XakHNZRuEE0" />

Designed by <a href="https://www.apartments.com.au/architects/sjb-architects">SJB</a>, the tower has been conceived as a landmark transit-oriented development anchored to the Newcastle Interchange precinct. The proposal includes 245 build-to-sell apartments across a mix of one, two, and three-bedroom residences, as well as two penthouses. Fifteen apartments and one operational unit are earmarked for NDIS housing. The co-living component would add a further 99 units, while the podium would accommodate retail uses and hotel facilities.

SJB said the site presents “a valuable opportunity to anchor the precinct by setting the standard for design, active ground planes and character at the key southern gateway.”

The architecture responds directly to the site’s position beside major transport infrastructure and within one of Newcastle’s fastest-evolving urban renewal precincts. The tower form sits above a sculpted podium designed to frame new public spaces, including a through-site pedestrian link connecting Station Street to Hannell Street, landscaped plazas, and activated retail edges.

<img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="a7bd6ff0-f7db-4ce8-a6dc-ea56e72c6149" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20lanne.png?VersionId=xzf39VADyhj7zBQY2I9fx9vI62u2tuSb" />

The design report describes the project as part of the broader transition of Wickham into “a vibrant, high-quality mixed-use urban precinct” that leverages proximity to the station, open space, and regional connectivity.

A detailed public art strategy has also been prepared for the development. The strategy positions the project as “a transit-oriented development of state significance at the gateway to Newcastle’s city centre” and outlines a series of integrated artworks responding to Newcastle’s industrial and transport heritage.

Creative Road’s curatorial framework for the project, titled Unveil, draws on “stratified surfaces, carved volumes, and light-filled apertures” while referencing Newcastle’s transformation from an industrial city into a contemporary education and technology hub.

<img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="77a882bb-14b1-4d28-99ff-9438e39508c0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20site.png?VersionId=cevgo_vN0eKPK78P8YcEu3mKPLkpFqE7" />

The proposal is being advanced through the NSW Housing Delivery Authority pathway after being declared State Significant Development in June 2025. The accompanying scoping report states the development aims to “maximise the site’s proximity to the Newcastle Interchange by delivering transit-oriented development” while increasing housing supply and affordable housing provision within the Newcastle LGA.

Urban Property Group’s plans align with the long-term strategic vision established under the Wickham Master Plan, which identified the interchange precinct as suitable for substantial uplift in height and density. The current proposal would significantly intensify that vision, positioning the tower among the tallest developments proposed for Newcastle.

The site sits immediately north of the Newcastle Interchange, bounded by Dangar Street, Hannell Street, and Charles Street. It is surrounded by a rapidly growing cluster of residential towers and mixed-use projects that have emerged following the completion of the light rail and transport interchange.

First look: Urban Property Group unveils Newcastle’s latest tower at Wickham interchange

Bottega House has completed settlement of a landmark riverfront site in Macquarie Street, St Lucia, representing its first major Brisbane development.&nbsp;

Positioned on the banks of the Brisbane River, the <a href="https://www.apartments.com.au/new-apartments/180-macquarie-street-st-lucia-qld-4067">premium site at 180 Macquarie Street</a> features uninterrupted river frontage in one of Brisbane’s most tightly held residential precincts.&nbsp;

The proposed development, currently under assessment with Brisbane City Council, has been designed by <a href="https://www.apartments.com.au/architects/plus-studio">Plus Studio</a> with interiors by <a href="https://www.apartments.com.au/interior-designers/mim-design">Mim Design</a> and will deliver a boutique collection of premium residences positioned specifically for owner occupiers and downsizers.&nbsp;

The residences are set to redefine luxury apartment living in the area, with a focus on architectural quality, refined finishes, landscape integration and elevated amenities including curated wellness facilities, resort-style pools and recreation spaces rarely seen in the local market.&nbsp;

Exclusive sales for the project will be led by Keenan &amp; Byrne, ahead of an anticipated launch later this year.&nbsp;

Bottega House Managing Director Nick Malloch said the project reflects the group’s ambition to deliver a highly curated residential offering within one of Brisbane’s most tightly held precincts.&nbsp;

“This is an incredibly rare riverfront opportunity and one we have approached with a long-term perspective,” Malloch said.&nbsp;

“Our vision from the outset was to create a boutique collection of residences that feel more like private homes than traditional apartments, with generous proportions, refined finishes and exceptional amenity throughout."

Malloch says there is a&nbsp;lack of premium owner-occupier stock of this quality in the market, particularly for downsizers wanting space, privacy and a true lifestyle offering without compromise.&nbsp;

"Demand is expected to be strong given the scarcity of premium riverfront opportunities of this nature within Brisbane’s inner-west."&nbsp;

Bottega House secures landmark riverfront site in St Lucia 

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The arrival of the first piling rig officially marks the commencement of construction at SIERA’s new beachside apartment development, Exhale, in Northcliffe.

<a href="https://www.apartments.com.au/new-apartments/exhale-surfers-paradise-8-enderley-avenue-surfers-paradise-qld-4217">Exhale</a>, a glass-encased tower featuring 54 large-scale apartments at 8 Enderley Avenue, is SIERA’s third Gold Coast development. It follows the recently completed PIPIS Bilinga beachfront project, which achieved suburb-record prices, and the soon-to-be-completed Chevron Island development, Tapestry.

[smartcode_project:default project_id=112661 project_image_fid=359603]

<a href="https://www.apartments.com.au/developers/siera">SIERA</a> Founder and Managing Director Brent Thompson said the arrival of the piling rig represented a significant milestone for the development, which is scheduled for completion in late 2028.

Over the next month, around 260 piles are expected to be installed as work progresses on the basement structure. The building is anticipated to rise above ground level early next year, before unveiling its sculptural glass curtain wall, developed in collaboration with specialist façade engineers.

“The façade was designed to maximise panoramic coastal views while creating a distinctive architectural identity,” Thompson said.

[smartcode_project:default project_id=112661 project_image_fid=355935]

Designed by BDA Architecture, Exhale will comprise just 54 two- and three-bedroom residences across 26 levels, a level of low-density living rarely delivered in this beachside pocket between Surfers Paradise and Broadbeach.

The project has been conceived as a resident-only building, with no short-stay accommodation permitted. SIERA says the model is intended to appeal to long-term owner-occupiers rather than transient holiday demand.

[smartcode_project:default project_id=112661 project_image_fid=361052]

Residences have been designed with large-format layouts and expansive glazing, with most apartments featuring more than 30 metres of glass frontage to maximise natural light and ocean views.

The amenity offering spans two levels and centres on wellness and lifestyle, including a heated magnesium pool, sauna, yoga and Pilates studio, gymnasium, private dining facilities, cinema lounge, and dedicated surfcraft storage.

[smartcode_project:default project_id=112661 project_image_fid=359607]

More than half of the apartments have already sold. SIERA has also opened a sales gallery for Exhale at its Chevron Island commercial premises, near its Tapestry tower and the site of its second Chevron Island apartment development, which is slated to launch in early 2027.
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[smartcode_project_cta:default project_id=112661]

Jessie Richardson

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